After Bitcoin ETF Fakeout: Ethereum ETH Price Rises.
Ether (ETH) has crossed the key $2,400 level this week as traders speculate on the potential adoption of an Ethereum exchange-traded fund (ETF). The second-largest cryptocurrency by market capitalization gained more than 5% in 24 hours, its highest level since last September.
Main points
Ether price rose above $2,400 as traders bet on Ether ETF following Bitcoin ETF approvals. BlackRock has already introduced an Ethereum Trust ETF that leverages Ethereum's production. Tokens such as LDO, RPL, MNT, and OP were clustered because they are linked to Ethereum and can benefit from ETFs. According to analysts, if the resistance around $2,320-$2,382 is broken, Ether looks set for a breakout with a bullish chart pattern targeting $3,500. Despite the market chaos from the fake Bitcoin ETF tweets, the price of Ether still managed to rise on strong fundamentals and on-chain data.
Driving the bullish sentiment was earlier news that BlackRock, the world's largest asset manager, had filed paperwork with the US Securities and Exchange Commission (SEC) for the Ethereum Trust ETF. The proposed “iShares Ethereum Trust” will allow major investors to easily know the prices of ether.
While Bitcoin ETF approvals are widely expected this year, BlackRock's filing adds credence to hopes for the Ether product as well. This is important because the SEC-approved crypto ETF brings in new institutional capital from pension funds, endowments and traditional finance players.
Along with Ether, the native tokens of Ethereum-based protocols have also benefited from ETF speculation. For example, Rocket Pool (RPL) and Lido DAO (LDO) recorded double-digit percentage gains. As share awards are a key feature of Ethereum's transition to a proof-of-stake agreement, an influx of new interest from ETFs could be important to save platforms.
On the technical analysis front, Ether's bullish chart signals have also reinforced positive fundamentals. According to the analyst World Charts, ETH seems to be consolidating in a “bullish pennant” pattern at the end around $3,500. To confirm this breakout, traders will first want to look at resistance levels at $2,320–$2,382 as plausible.
The promising data on the chain has boosted market confidence in Ether's progress. Blockchain intelligence firm Sentiment reported that the number of large “well” transactions on Ethereum has risen over the past day. This shows that investors in the pocket still have the appetite to accumulate more ETH at these levels.
Surprisingly, Ether managed to post a gain despite the fake news of the approval of the Bitcoin ETF driving the broader crypto market. A series of spoof tweets from a hacked SEC account initially sent Bitcoin spiking before quickly collapsing after the scam was revealed. Still, Ethereum has recovered from its strong fundamentals and recorded a daily gain of nearly 4%.
With ETF excitement building, technicals flashing signals, and whales continuing to rally, analysts widely agree that more downside is in store for Ether. The next key resistance level to watch is the psychological $2,500 mark, which opens the door to a test at $3,000 and above. As far as crypto adoption trends go, Ethereum appears to be outperforming the broader digital asset market.
